Coeur Trading at a Premium: Here's How to Play the Stock Now

Coeur Mining, Inc. CDE is currently trading at a forward 12-month price-to-sales multiple of 6.37X, above the peer group average of 3.95X.  Image Source: Zacks Investment ResearchThe forward 12-month price-to-sales multiples for peers Southern Copper Corporation SCCO and Lundin Mining Corporation LUNMF are 9.1X and 4.31X, respectively. CDE and SCCO currently have a Value Score of D, while LUNMF has a score of C.Coeur Mining has gained 205.5% year to date compared with the Zacks Mining-Non Ferrous industry’s 37.6% increase and the S&P 500’s 19.4% rise. Southern Copper and Lundin Mining are up 62% and 129%, respectively.Price Performance of CDE vs. Industry, S&P 500, SCCO & LUNMFImage Source: Zacks Investment ResearchLet’s look at the CDE’s fundamentals to analyze the stock better. Coeur Reports Robust Q3 Revenue on Multi-Mine StrengthCoeur Mining reported third-quarter consolidated revenue of approximately $555 million, which represented a substantial 77% year-over-year (YoY) increase from the third quarter of 2024. This jump was driven by higher realized metal prices, increased sales volumes and balanced contributions from each of the company’s five wholly owned North American gold and silver operations.  Coeur Mining’s diversified North American portfolio—which spans the Las Chispas silver-gold mine in Sonora, the Palmarejo gold-silver complex in Chihuahua, the Rochester silver-gold mine in Nevada, the Kensington gold operation in Alaska and the Wharf gold mine in South Dakota—was a key driver of its strong quarterly results. The company noted that revenue contributions were evenly spread across these five assets, with Palmarejo generating about 23%, Kensington 22%, Rochester 20%, Wharf 18% and Las Chispas roughly 17% of total third-quarter revenue.  This balanced operational mix allowed Coeur Mining to fully capitalize on higher metal prices and robust production levels across multiple regions, leading to better operational execution, reduced reliance on any single asset and reinforced the company’s overall growth trajectory across its North American footprint. Strong Cash, Low Debt Highlight Coeur’s Q3 MomentumThe company’s financial transformation underpins a more resilient business model, deleveraging rapidly while still funding growth and returning capital. Coeur Mining ended the third quarter of 2025 with a significantly strengthened financial footing, holding $266.3 million in cash and equivalents, more than double its previous quarter's balance.  Coeur Mining generated $237.7 million in cash flow from operating activities during the quarter, a strong increase from $206.95 million in the previous quarter. This robust operating cash flow forms a foundation for Coeur’s capital deployment strategy, supporting capex, debt repayment and its shareholder return initiatives. Year to date, it has repaid more than $228 million of debt, reducing its total debt to $363.5 million and bringing its net-leverage ratio down to a very conservative 0.1. Coeur Mining invested $49 million in capital expenditures in the third quarter, of which about 70% was allocated to sustaining capex and 30% toward development projects. On the exploration front, the company spent $30 million, with $25 million expensed and $5 million capitalized, signaling a dual focus on reserve maintenance and future growth. The cash cushion not only provides flexibility for further expansion but also reduces risk in a volatile commodity price environment. Major Growth Projects to Boost Coeur’s Future RevenueThe Rochester silver-gold mine in Nevada remains one of Coeur’s most important growth engines. A major expansion project completed over the past few years has significantly increased the mine’s throughput capacity, with the new Stage VI leach pad and enhanced crushing circuit now in commercial production.  Coeur’s acquisition of Las Chispas brought a high-grade, low-cost silver-gold asset into its portfolio early in 2025, contributing meaningfully to production and top-line results, including in the third quarter. Las Chispas’ strong performance has enhanced the overall production mix and cash flow, and is expected to continue supporting revenue growth as the asset is fully integrated and optimized. Coeur is executing one of its largest exploration programs to date, with substantial drilling underway at Palmarejo, Kensington, Wharf, Rochester and Las Chispas, aimed at extending mine lives, improving grades and expanding reserves. The company announced a commitment of $67-$77 million for the same. At the Silvertip project in British Columbia, Coeur has more than tripled its land position and is undertaking expanded drilling programs aimed at increasing understanding of this polymetallic deposit. Early indicators suggest the potential for significant future resource additions. CDE’s Rising Earnings Estimates Reflect Positive SentimentsThe Zacks Consensus Estimate for 2025 and 2026 for CDE has been revised higher over the past 60 days.  Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for CDE’s 2025 earnings is currently pegged at 87 cents per share, suggesting year-over-year growth of 383.3%.Image Source: Zacks Investment ResearchFinal Thought: Hold CDE for NowCoeur Mining carries a Zacks Rank of #3 (Hold) as its recent operational momentum is offset by ongoing risks. The company has benefited from stronger metal prices, improved production and a healthier cash position, reflecting early returns from its multi-year investment cycle. These positives are offset by persistent sensitivity to gold and silver price swings and elevated capital spending. Given the risks and premium valuation new investors may wait until CDE demonstrates steadier cost control, consistent production delivery and long-term cash-flow strength.You can see the complete lists of Zacks Rank #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern Copper Corporation (SCCO): Free Stock Analysis Report Coeur Mining, Inc. (CDE): Free Stock Analysis Report Lundin Mining Corp. (LUNMF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks